New Rules Designed to Make Banking Sector More Responsible Following Financial Crisis

LONDON—The U.K. staked out new ground in a global clampdown on banker pay and bad behavior on Wednesday with a rule that could make executives and traders hand back bonuses up to seven years after they are received.

The Bank of England's Prudential Regulation Authority said the rule, set to take effect Jan. 1, will encourage bank workers to take greater responsibility for their actions. It would be implemented if an employee was found...